In today’s daily we have covered stock research on Recall Limited. To view Top 20 ASX Dividends and 3 Gold Stocks to Buy, please click on the link.

S&P 500 was down by 23.68 points or 1.25% to 1865.09 on Friday. Momentum shares like Netflix and Tripadvisor sold off sharply for a second straight day on Friday, giving NASDAQ its worst day since February and leaving investors anxious about how much further they may fall.

The big drop in momentum stocks overshadowed Friday’s relatively strong March jobs data, which helped the DOW and S&P 500 hit intraday record highs early in the session. Nasdaq’s 2.6 percent loss follows a nearly 1 percent slide on Thursday and puts the index down more than 5 percent its closing high for the year, which was set on March 5. The initial jump for the S&P followed news that the US economy had added 192,000 jobs in March while the previous two months’ readings were revised upwards by a total of 37,000. Now that the weather-related weakness is behind us, we anticipate that the monthly gains in payroll employment will remain close to the 200,000 mark, driving the unemployment rate gradually lower and allowing the Federal Reserve to continue winding down its monthly asset purchases.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200was up 12.9 points or 0.24% and closed at 5422.80 points on Friday. Macquarie Group has joined the big banks, Treasury and a range of industry bodies in calling for policies to develop the domestic corporate bond market. One of Australia’s largest rural landholders and red meat producers Macquarie Group’s Paraway Pastoral has booked a $46 million loss chiefly due to land and water revaluations.

BHP Billitonhas earned almost twice as much money from divestments as rival Rio Tinto since the great resources fire sale began 18 months ago. Ten Network Holdings has raised the possibility of modifying its ­program supply deal with United States studio CBS, as part of a broader cost reduction ­program.


S&P ASX 200 Daily Chart (Source – Thomson Reuters)


The top gainers on ASX 200 were:-
 

Code	Name	Price	Change	% Change
SKE	Skilled GL	$2.78	$0.15	5.70%
BRU	Buru Energy	$1.295	$0.065	5.28%
BKN	Bradken	$4.45	$0.17	3.97%
FXL	Flexigroup	$3.57	$0.13	3.78%
MYR	Myer	$2.33	$0.08	3.56%

 
Top 20 ASX Dividends

3 Gold Stocks to Buy
 
 

Stock of the Day – Recall (REC)

The company is providers of information management solutions. Its information management solutions include document management solutions, secure destruction service and data protection service. Recall’s DMS service offering provides indexing, storage and retrieval of physical documents, as well as capture, indexing, storage and retrieval of digital information.

REC provided a 1H14 trading update in February following its demerger from Brambles in December. Underlying revenue grew 4% with growth in all regions despite the negative impact of a poor performing SDS business in the US and Germany. The core of the DMS business recorded a solid 8% growth on 2.7% carton growth implying activity levels and pricing have improved.


Source - Recall
 
Underlying profit fell 0.7% to $66.2million, on the back of increased costs, which were replaced in the business following the failed sales process from 2012. There also appears to be a negative mix affect, where the higher margin SDS business saw falling revenue, particularly in North America. Management announced that it has completed two small bolt on acquisitions with combined revenues of US$5 million.


Recall Daily Chart  (Source - Thomson Reuters)

Flat underlying 1H pro forma profit was below our expectations.  DMS growth of 8% shows that above historical carton storage growth of 4% is possible with reinvestment into the business, a focused management team and the potential for further bolt on acquisitions. We like the Recall story but believe it is overvalued at its current price and would review the stock at a later date.
  

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